Dumb And Dumber

That's the majority of our congressmen. They don't have a clue about economics. They are attempting to micromanage our money for us. And you wonder why our nation is in peril?

Here is a simple explanation of what the crux of the problem IS. First, the Federal Reserve created fiat dollars right out of thin air and lent them out causing price bubbles for things like housing and stocks. Once prices got too high for the average worker to afford they began to default. Soon a glut of homes began to develop. Banks at that point began to stop lending thereby beginning the deflation of dollars in the economy. With far fewer dollars in the economy everything just about began to fall in price to reflex this drop in the money supply. Today, millions of home mortgage holders are refusing to pay their mortgages because the amount reflects the old higher inflated value of their home. So we today are in a sort of banker/mortgage borrower Mexican standoff. The banks want to be paid the higher inflated price for their holdings which they refer to as "toxic assets." That's an oxymoron. In reality they must be called "toxic liabilities" until borrowers start to repay the loans. But the homeowners only want to pay the current actual value for their homes and many until this is the case will simply not pay their mortgages. With millions not paying their mortgages the banks refuse to lend out any more money. That causes the money supply to keep declining and the above scenario keeps spiraling downward.

Obama will try to lock in the banksters' profit at the higher inflated price by lowering homeowners' mortgages to reflect their current value. However, the homeowners will not get a penny of profit from the future sale of the house until the house sells for more than the original inflated price. People in effect get to pay for the roofs and other maintenance for their rentals. Americans will never go for this scam and will just keep not paying for their mortgages until driven out by foreclosure. But the banks don't want any more vacant housing than the millions that they are already saddled with.

Congress is desperately trying to prevent this inevitable outcome by not just letting prices fall to where they should be. In doing so to protect their patrons in banking as well as the fairy tale inflated flow of tax revenue for their personal pork preferences they only delay the inevitable. They only drag out the misery for the weakest among us to feather the nests of the fat cats. That is why they are dumb and dumber amigos and if you continue to listen to them do you know what that makes you? Spread the word amigos. The free range slave revolt is brewing.